Social influencing factors on investment decisions in new cryptocurrencies: an application of fundamental conceptualization theory

Abstract

Since people's current decisions in buying a digital currency are not only derived from the individual's own research, and different age groups, especially youth and teenagers, are influenced by reference groups in social networks, the necessity of conducting this study is twofold. It can be This research examines the effect of social influence conditions in social media on digital currency investment decisions using grounded theory. By using the theory of fundamental conceptualization, in this research we are trying to discover the main phenomenon, causal conditions, intervening variables and background components that affect the investor's behavior in response to social media content when buying digital currency. Semi-structured interviews were conducted with a targeted sample of 17 experts in Iran, because theoretical saturation was achieved in interview number 17. The samples were selected through the snowball method, and after completing the interview, each influencer introduced one or more other influencers who have sufficient knowledge in this field. Our results show that the three key consequences of our model include market volatility, information asymmetry, and regulatory scrutiny. The most important findings of our research are contextual factors that include the effect of trust in social media, key leaders, cultural and social factors, investor experience and knowledge. Using an integrated approach, this study contributes to enhancing our knowledge of the complex interplay between social media dynamics and cryptocurrency markets, and provides useful information for investors, policymakers, and industry stakeholders.